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TMI Blog2020 (5) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is with regard to disallowance of expenses relatable to exempt income made by the Assessing Officer and confirmed by CIT(A) by invoking provisions of Section 14A of the Act read with Rule 8D of the Income Tax Rules, 1962 (in short 'the Rules'). For this, assessee has raised the following grounds :- "A. DISALLOWANCE U/S. 14A OF THE INCOME TAX ACT, 1961 ("the Act") R.W.R. 8D OF THE INCOME TAX RULES, 1962 ("the Rules") 1. On the facts and in circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals) - 8, Mumbai *"CIT(A)"+ erred in confirming the action of the Deputy Commissioner of Income Tax, Circle - 3(3)(1), Mumbai ("Assessing Officer") in disallowing of Rs. 49,96,22,344/- u/s. 14A of the Act r.w.r. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer can be directed that only those investments which yielded dividend income during the year should be considered for computing disallowance of expenses relatable to exempt income under Rule 8D(2)(iii) of the Rules. 5. We have heard the rival contentions and gone through the facts of the case. We noted that in assessment year 2008-09, in assessee's own appeal being ITA No. 4326/Mum/2012, the Tribunal vide order dated 13.09.2017 has, on identical facts, referred the matter back to the file of Assessing Officer. Respectfully following the said decision and also relying on the decision of Special Bench in the case of Vireet Investment (P.) Ltd. (supra), we restore this issue back to the file of Assessing Officer with the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is common ground of appeal is allowed for statistical purpose." 9. Thus, respectfully following the said decision we direct the Assessing Officer to compute the book profits in accordance with directions of Hon'ble Special Bench in the case of ACIT v. Vireet Investments Private Limited (supra)." 7. We noted that no disallowance can be made for expenses relatable to exempt income by invoking provisions of Section 14A of the Act r.w.r. 8D(2)(iii) of the Rules while computing book profit under Section 115JB of the Act in view of decision of Special Bench in the case of Vireet Investment (P.) Ltd. (supra). Respectfully following the same, we direct the Assessing Officer to delete the disallowance. Thus, this issue of assessee's appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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